Join our daily newsletter At The Bell to receive exclusive market insights
- Black Mountain Energy (BME) entered negotiations to acquire the ‘Half Moon’ prospect, from NYSE-listed Earthstone Energy, in the December quarter
- The company also progressed its preparations to complete the 2D seismic acquisition within the Valhalla gas project
- BME collected baseline monitoring data within EP 371 between 2021 and 2022 to further advance efforts at the Valhalla project
- Black Mountain kickstarted its search for a new CFO, leading to the appointment of Craig Gouws on January 18, 2023
- BME shares were 4.65 per cent, trading at 4.5 cents at market close
Black Mountain Energy’s (BME) shares have risen nearly 5 per cent following the release of the company’s quarterly report for the three-month period to December 31, 2022.
The company began negotiations to acquire NYSE-listed Earthstone Energy’s interest in an existing oil and gas field, known as the ‘Half Moon’ prospect, within the Permian Basin in New Mexico. The purchase was completed on January 25 of the new year.
BME expects the producing wells to provide revenue from the 465 mcfepd (77 boepd) of net non-operated production from eight proved developed producing (PDP) wells.
Black Mountain continued to prepare for its planned 2D seismic acquisition within the Valhalla gas project.
The company was unable to complete the seismic program in late 2022, but said it remains hopeful it will be able to mobilise and execute the program in Q2 2023.
Black Mountain conducted the required annual well integrity testing on its three existing wells in EP 371 over the December quarter.
Baseline monitoring was undertaken, with groundwater and air quality baseline data collected within the exploration permit between 2021 and 2022. This was carried out to support the development of the EPA referral documentation for the Valhalla exploration and appraisal program.
BME carried out baseline air quality and dust monitoring, with three specialised real-time air quality and dust monitoring stations set up, which were later demobilised from the site in November 2022.
Black Mountain continued its efforts to conduct project planning and commercial discussions in regards to the Valhalla gas project.
Following the completion of a qualitative gas composition analysis of anticipated Valhalla gas to LNG, the Australian Gas Pipeline Infrastructure Group (AGIG) revealed the study proved the suitability of Valhalla gas for blending with existing pipeline infrastructure.
BME continues to progress its discussions surrounding specific pipeline and processing solutions.
The December quarter was also highlighted by the fresh search to appoint a new company CFO. The process has since been complete, with the appointment of Craig Gouws on January 18.
BME shares were 4.65 per cent, trading at 4.5 cents at market close.
